The subject is back in the news this month, as the Statesman and KVUE-TV released a three-month report that looked into how the loophole I reported on affects property taxes in Travis County. Like here, Austin has had plenty of lawsuits brought by business owners to have their taxes reduced based on the price of what they claim are similar properties.

The report found, like I did, that commercial entities don’t have a reason not to sue, since even if they lose, the appraisal district has to cover their legal fees. Bexar County Chief Appraiser Michael Amezquita said because legal fees are too costly, most cases settle at a lowered value. Both Bexar and Travis counties budget $700,000 for litigation, according to Amezquita and the Statesman/KVUE report.

The investigation also found that since 2010, property owners have sued to have their values reduced by $1.8 billion – which amounts to about $40 million that didn’t go to taxing entities. While the report focused on cases that have settled, one that has yet to be adjudicated is a lawsuit filed Aug. 30 by the Circuit of the Americas, or COTA, which is hoping to get a reduced property tax value for its Formula 1 track.

Company spokeswoman Julie Loignon said they are exercising its right to have an independent appraisal to establish their property tax rates.

“This is our first assessment,” she said via email, “and we need to make sure the baseline established is fair and accurate.” She continued, “The County’s appraised value of the Circuit of the Americas property exceeds the market value of the taxable and tangible assets of our company. That is why we are seeking an independent appraisal and had to petition the court to do so.”

Media has reported the venue cost between $400 million to $450 million to build, but it’s on the Travis County tax rolls for $298 million. Last year, the Texas Major Events Trust Fund paid Formula 1 race organizers $29.3 million. This year’s Formula 1 U.S. Grand Prix will take place Nov. 15-17 and is not getting a boost from the trust fund, but COTA has asked Travis County to pay $33.3 million to expand roads in the track’s vicinity in time for its 2014 race.

Attorney Robert Mott, who’s representing Travis CAD in the Circuit of The Americas lawsuit, said the case is likely to be quite complicated. Finding comparables similar to the race track, for one, could be challenging.

“It’s a large case and it’s likely to involve complex appraisal issues,” he said. “We’ve heard all of this before, usually with large corporate interests – they say all the value is in their business acumen.”

Dick Lavine, a senior fiscal analyst for the Center for Public Policy Priorities, hopes Travis CAD will use some of its litigation budget to fight the Circuit of The Americas. While the litigation takes its course, COTA says it’s offered to pay taxes that the Del Valle Independent School District had budgeted for its 2013-14 school year.

“This will be an extremely expensive case for the district to have to defend, but we have to,” he said. “We’re talking about a lot of money that goes to support public services.”